Solved

Clay Holladay Owns a Chain of Radio Stations

question 50

Multiple Choice

Clay Holladay owns a chain of radio stations. The advertising time he sells to advertisers is directly related to the number of persons who are listening to each station in each radio market. Clay purchases estimates of the number of persons who listen to the different radio stations in each market from Arbitron, a marketing research firm. In every radio market Arbitron gathers the same data; the number of persons listening to every program on each station as well as their age and gender. Arbitron records this information in a database and they offer it to every person who wishes to subscribe to it for a fee. Arbitron is an example of a:

Definitions:

Standardized

refers to making something conform to a standard, ensuring consistency and uniformity across different situations or applications.

Differentiated

In a market, it refers to products that are distinguished from each other through variations in quality, features, branding, or customer service.

Oligopoly

A market structure in which a few firms sell either a standardized or differentiated product, into which entry is difficult, in which the firm has limited control over product price because of mutual interdependence (except when there is collusion among firms), and in which there is typically nonprice competition.

Homogeneous Product

A product that cannot be distinguished from competing products from different suppliers.